Damai Entertainment Holdings Limited (1060) announced a renewed framework agreement dated February 3, 2026, extending existing continuing connected transactions with Youku Technology, a subsidiary of Alibaba Group. The new agreement—the 2026 Framework Agreement—will replace the 2023 Framework Agreement, which is scheduled to expire on March 31, 2026. The renewal term spans three years, from April 1, 2026 (or the date of the company’s Independent Shareholders’ approval, whichever is later) until March 31, 2029.

Under the 2026 Framework Agreement, two major transaction categories apply: (1) the transfer of copyrights (the “Transfer of Copyrights”) for Dramas and Movies and (2) the commissioned production of Dramas and Movies for Youku (the “Commissioned Production Cooperation”). Settlement calculations include basic production costs, contingent revenue, and incentive portions tied to performance metrics such as “EPI Value.”

According to the announcement, annual caps for the transaction fees to be paid by Youku Technology to Damai Entertainment (1060) are set at RMB2,736 million for the year ending March 31, 2027, RMB3,010 million for 2028, and RMB3,311 million for 2029. These figures reflect expectations of increased production volume, expanded project pipelines, and higher market influence of upcoming Dramas and Movies.

The renewed arrangement constitutes continuing connected transactions under Chapter 14A of the Listing Rules, requiring reporting, announcement, annual review, and independent shareholder approval. An Independent Board Committee has been formed to evaluate the proposed terms, and an Independent Financial Adviser has been appointed. A Special General Meeting (SGM) will be scheduled for shareholders to vote on approving the 2026 Framework Agreement and its related annual caps. The announcement states that a circular containing further details is planned for dispatch by March 3, 2026.